You are here

Tatts hails digital initiatives as key financials rise in Q1

Australia’s Tatts Group has cited “significant growth” across digital sales as a key reason behind a jump in key financials during the first quarter.

Group revenue for the first quarter for the three months through to September 30 amounted to A$743.1m (€475.6m/US$565.2m), an increase of 6.8% on the corresponding period last year.

Net profit after tax from continuing operations during the first quarter was also 14.8% ahead of last year, coming in at A$67.2m, while earnings before interest, tax, deprecation and amortisation jumped 9.6% year-on-year to A$128.2m.

Lotteries revenue was up 8.8% in the quarter, with Tatts reporting that all three of its major draw games showed “strong revenue growth” and sales from digital lotteries was up 29.6%.

In terms of gaming, the MAX and MAXtech operations saw revenue climb 4.7% after benefiting from a monitoring price increase in New South Wales and sales growth in Tatts' value-adding products and services.

Earlier this month, Tatts was handed a major boost regarding its planned merger with Tabcorp after the deal was granted approval by the Australian Competition Tribunal (ACT).

The two firms have agreed to join forces and create a combined business worth approximately A$11bn.

Australia’s gambling market has seen plenty of change in recent months, with the latest coming after the Northern Territory Government banned Lottoland from selling bets on Australian lotteries.

Lottoland had been operating in the country via a licence issued by the Northern Territory, but the decision means is no longer be able to take bets on Australian lotteries anywhere in the country – similar to the system in the UK where it cannot accept bets on National Lottery products.

Prior to the Northern Territory's announcement, governments in New South Wales, Tasmania and West Australia had publicly stated their intention to ban synthetic lotteries in their states, while South Australia legislation already prohibits bets on lotteries.

Meanwhile, Crown Resorts is seemingly looking to sell off its stake in online gaming business Crownbet after holding talks with a number of interested parties.

Crown Resorts last week confirmed it has already staged ”very preliminary discussions” with William Hill, while reports have also linked Paddy Power Betfair to a possible offer.